The decision means that Reinsdorf, a Chicago sports mogul, and his group of investors will work with the city to hammer out the details of the lease and that Ice Edge Holdings is essentially out of the running.

It also means that Reinsdorf is on track to owning the team, pending the approval of the NHL.

The lease agreements voted on Tuesday described each buyer's plan for boosting team finances and compensating Glendale to play at Jobing.com Arena. The city pays off $180 million in debt that it took on to build the arena in 2003 with the team's payments.

The Coyotes have not turned a profit since moving to Glendale. The team was bought out of bankruptcy last year by the NHL for $140 million. The league expects to lose an additional $20 million this season.

Both offers would create a community facility district in Glendale's sports and entertainment hub off Loop 101 and Glendale Avenue. The independent taxing authority, which would likely surround the arena and include Westgate City Center, could sell bonds, levy property taxes and collect revenue in other ways to prop up the team financially. It's possible that the charges would trickle down to shoppers and hockey fans.